A Tax Shock That Could Save Social Security? - AMAC & MarketWatch
Brent Arends, a financial writer at MarketWatch, has an op-ed here that explains the key findings from ProPublica, a nonprofit investigative public interest website, with regard to the nation’s richest and taxes. Arends reminds readers that our income tax system taxes labor but not wealth. Laborers pay 15.3% payroll tax on their very first dollar for Social Security and Medicare, split 50% between employer and employee. And the tax is zero after about $143,000 in wages in a year. He argues that billionaires should pay at least some tax on income. Arends reminds readers of the financial insolvency both entitlement programs face as early as 2024. Full article here.
The Association of Mature American Citizens (AMAC) leaves it to political leaders to set income and payroll tax rates but has a program to address the insolvency facing Social Security without an increase in tax rates. Through modest technical changes now rather than waiting until insolvency is imminent, the program can be preserved for successive generations. Read about AMAC’s Social Security Guarantee here.
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